Bill > HB5449

This bill modifies Texas state law to establish more precise limits on government spending growth by defining "all funds appropriations" as money from the general revenue fund, dedicated accounts, general revenue-related funds, and other state, local, and federal funds. The bill requires that the rate of growth for state and local appropriations cannot exceed the average taxpayer's ability to pay, and specifically caps this growth based on two key factors: the estimated three-year average population growth and the three-year average inflation rate, as determined by the Legislative Budget Board (LBB) using data from the U.S. Bureau of Labor Statistics and Census Bureau. The LBB must establish and adopt limits on appropriation growth for each state fiscal biennium, and if population growth or inflation is negative, appropriations cannot exceed the current biennium's levels. The bill also mandates that any over-collected taxpayer money must be returned by reducing taxes, and it introduces a requirement that increasing spending limits beyond the proposed amount would need approval from three-fourths of legislators, who must declare and specify the nature of an emergency. These changes will apply to state fiscal budgets beginning September 1, 2025, with the aim of providing more fiscal discipline and transparency in government spending.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB5449